As you may know, we audit for compliance with respect to the new TILA loan originator compensation rule. In the course of doing such audits for New York companies, we look for compliance with the Wage Theft Prevention Act (WTPA) and its implementing regulations. These WTPA requirements are administratively cumbersome.
The Wage Theft Prevention Act (WTPA) annual notice requirement is effective as of January 1, 2012 and must be complied with by February 1, 2012. Thus, the implementation period is exceedingly short.
If you are a New York company or have affiliates and branches in New York or own companies in New York, you must comply with the current notification requirement of the WTPA.
Please be sure to discuss this matter with your firm's accountant or financial adviser. Be prepared to implement the WTPA procedures immediately.
Even if you are not a New York company or subject to this regulation, a review of the notification requirement provides a useful tool in implementing the TILA loan originator compensation rule.
- Requirements
- Deadlines
- Examinations
- Exemption
- Overtime
- Forms and Processing
- Penalties
- Library
Requirements
Employers must provide all New York employees with an annual written notice known as a Notice of Pay Rate and Payday (Notice) beginning January 1, 2012.
Previously, employers were required to provide this notice only to new employees when certain changes in compensation were made.
Now all employees must receive this notice on an annual basis and it must be signed every year as it is an annual requirement.
Deadlines
The Notice must be provided between January 1 and February 1 of each year beginning in 2012.
The form must be signed by the employee and dated prior to the deadline of February 1, 2012. The signature is necessary as proof that the employee received the Notice.
The employer must sign as preparer, and complete the information in box one of the Notice.
In addition, the employer must retain the signed and dated original copy for six (6) years.
Examinations
New York's Department of Labor will be conducting random compliance audits, in which very significant penalties for failure to comply will be assessed.
It is also possible that this Notice will be either called for or referred to in a banking department examination or a CFPB state-affiliated audit for compliance with the TILA loan originator compensation mandates.
Exemption
There is no exemption for small employers.
As long as a business has a single employee in New York State, the Notice is required.
Independent contractors are not covered by this law.
Overtime
Regardless of an employee's method of compensation and entitlement to overtime, the Notice must be provided. This means that all employees, both exempt from overtime requirements and non-exempt, must receive the Notice.
